EX-12.1 2 a2012331-ex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS 2012.3.31-EX12.1


Exhibit 12.1

Enterprise Financial Services Corp
Statement Regarding Computation of Ratios of Earnings to Fixed Charges and Preferred Stock Dividend Requirement (unaudited)
 
Three Months Ended March 31,
 
Years ended December 31,
($ in thousands)
2012
 
2011
2010
2009 (2)
2008
2007
Earnings (1):
 
 
 
 
 
 
 
Income (loss) before income taxes
$
9,245

 
$
37,372

$
6,396

$
(49,321
)
$
11,738

$
24,044

Add: Fixed charges from below
7,543

 
33,866

35,242

51,396

60,454

69,242

Earnings including interest expense on deposits (a)
$
16,788

 
$
71,238

$
41,638

$
2,075

$
72,192

$
93,286

 
 
 
 
 
 
 
 
Less: interest expense on deposits
(4,469
)
 
(21,658
)
(22,867
)
(30,203
)
(39,920
)
(52,864
)
Earnings excluding interest expense on deposits (b)
$
12,319

 
$
49,580

$
18,771

$
(28,128
)
$
32,272

$
40,422

 
 
 
 
 
 
 
 
Fixed charges (1):
 
 
 
 
 
 
 
Interest on deposits
$
4,469

 
$
21,658

$
22,867

$
30,203

$
39,920

$
52,864

Interest on borrowings
2,117

 
8,497

9,544

18,642

20,418

16,378

TARP preferred stock dividends (pre-tax)
957

 
3,711

2,831

2,551

116

—

Fixed charges including interest on deposits (c)
$
7,543

 
$
33,866

$
35,242

$
51,396

$
60,454

$
69,242

 
 
 
 
 
 
 
 
Less: interest expense on deposits
(4,469
)
 
(21,658
)
(22,867
)
(30,203
)
(39,920
)
(52,864
)
Fixed charges excluding interest expense on deposits (d)
$
3,074

 
$
12,208

$
12,375

$
21,193

$
20,534

$
16,378

 
 
 
 
 
 
 
 
Ratio of earnings to combined fixed charges
 
 
 
 
 
 
 
     Excluding interest on deposits (b/d) (3)
 4.01x

 
 4.06x

 1.52x

 -1.33x

 1.57x

 2.47x

     Including interest on deposits (a/c)
 2.23x

 
 2.10x

 1.18x

 0.04x

 1.19x

 1.35x

 
 
 
 
 
 
 
 
Ratio of earnings to combined fixed charges and preferred dividends:
 
 
 
 
 
 
 
     Excluding interest on deposits (b/d) (3)
 5.37x

 
 5.40x

 1.67x

 -1.65x

 1.57x

 2.47x

     Including interest on deposits (a/c)
 2.40x

 
 2.24x

 1.20x

 -0.01x

 1.19x

 1.35x


(1) As defined in Item 503(d) of Regulation S-K.

(2) Due to the Company's $46.7 million loss (including $45.4 million of goodwill impairment charges) for the year ended December 31, 2009, the ratio coverage was less than 1:1. The Company would have had to generate additional earnings of $49.3 million to achieve a coverage ratio of 1:1.

(3) The ratio of earnings to fixed charges and preferred dividends, excluding interest on deposits, is being provided as an additional measure to provide comparability to the ratios disclosed by all other issuers of debt securities.